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Credit card APR, or annual rate, quantifies costs. First credit withdrawal. In other words, if you have a balance beyond your credit card's grace period, the APR determines how much interest your card issuer can charge on that balance.

If you want to know if your credit card APR is right, compare it to the average credit card APR, which is currently over 18%. If your card's APR is below the national average, it's a good APR.

Even the national average credit card is a good option, especially if you're looking at one of today's best credit cards. With rewards, bonuses and perks. Try to avoid credit cards with APRs significantly above the national average. Having a balance on these cards can mean paying a lot of interest. Therefore, some 0% APR credit cards have an introductory period during which no interest is charged at the time of purchase.

Understanding how credit card interest works can help you choose the credit card that is likely to offer you the best APR package. Here are some things to consider when reviewing APRs.

What is a good credit card APR?

There are many types of credit card APRs, but the one that people are most interested in is a purchase. APR — Interest rate paid at time of purchase.

It's easy to say that you should always look for a credit card that offers an APR below the national average, but buying the right APR is highly dependent on your credit score. Those with below average credit scores may be offered higher interest rates than those with better or better credit. This means that a good credit card rate for someone with fair credit is different from a good rate for someone with good credit.

If you want your credit card APR to be as high as possible, we recommend working on improving your credit score first. Once the FICO score exceeds 670, the credit transitions from 'subprime' to 'prime'. This means that you are eligible for prime interest rates. As her credit rating continues to improve, she is more likely to receive her APR offers for credit cards from lenders.

credit card him How to compare APR

When comparing credit cards, look at each card's APR range.For example, if you're looking to buy one of the top rewards credit cards, consider American Express's Blue Cash Preferred® card with a variable annual rate of 18.24% to 29.24%) or the Chase Sapphire Preferred® card (18.99%). variable APR from percent to 25.99 percent).

The lowest APR you can get with Chase Sapphire Preferred is close to the national average APR, but higher than the lowest APR you can get with Blue Cash Preferred.

Also, credit cards come with an introductory APR for purchases and/or balance transfers. For example, the Blue Cash Preferred Card offers 0% first-year APR on purchases and balance transfers for 12 months (with variable APR from 16.99% to 27.99% thereafter). Chase Sapphire Preferred, on the other hand, does not have a 0% introductory APR offer.

It is also important to be aware of the penalty APR that may apply if you fail to pay your credit card. Both Blue Cash Preferred and Sapphire Preferred have a penalty of 29.99% APR. may be charged (variable).

With all this in mind, decide which factors are most important to you and choose your credit card accordingly.

How to qualify Good Credit Card APR

The best way to get a good APR is to practice good credit habits. Here are some actions you can take now to improve your score.

  • Please make all credit card payments on time. Your payment history makes up 35% of your credit score, so make sure it's positive.
  • Do not exceed your credit card limit. Keeping your balance low improves your credit utilization.
  • Pay off as much of the outstanding balance as possible. Prioritizing your existing debt brings you one step closer to being debt free.

As your credit score improves, look for credit cards with lower interest rates. The higher your credit score, the higher the interest rate you are likely to be offered. Paying off your balance each month is ultimately the best way to avoid interest altogether. Here are some recommended low-interest credit cards.

How to Lower Your Credit Card APR

There are two ways to lower your credit card APR. The first way to improve your credit card APR is to call your credit card issuer and request a lower interest rate. If you don't feel comfortable calling customer service and asking for a reduction in your APR, a December 2020 survey by found that 78% of cardholders who requested a rate cut received a reduction. Remember. Issuers may consider you for a hardship program if you are having trouble making monthly payments. Sometimes you have to ask.

Another way to lower your credit card APR is to build credit. In some cases, lenders offer better interest rates, including a promotional 0% annual rate, to their most creditworthy customers. Even if his current credit card issuer doesn't lower his APR in response to his newly improved credit score, applying for a new credit card or loan will likely increase his APR for the credit card. increase.


Generally speaking, credit card APRs are below the national average. However, choosing the best APR credit card depends on your credit score. Work on getting your score as high as possible so you can access low-interest credit cards. If you want to avoid paying interest on your credit card, a balance transfer credit card allows you to pay off your old balance without interest. However, the best way to avoid credit card interest is to not carry any balance at all.